Some aspects of your business fly under the radar, and are not often thought about, but nonetheless remain important. The planning systems of your supply chain are one such area of hidden value: don’t ignore them, and you can expect to see increased productivity. This can include upgrading technology systems, or finding interim candidates for a supply chain.
Supply chain planning is essentially the accurate forecasting of the demands on your company in the near future, and it’s important to hit the mark as close as possible. Too few sales, and you end up with too much inventory and a drop in profits. Too many sales puts too much strain on the infrastructure, and can end up being just as expensive. Good planning lets your business operate at maximum capacity.
Planning systems have been under-delivered by a lot of vendors of technology, but there’s great value to be found there. It’s not a system that takes hold overnight, as there are a number of factors that go into it. You really need the right fit of technology, whether that’s an ERP deployment or an S&OP process.
What you gain from a good planning system is more than just accurate predictions. A good planning system absorbs the complexity of a supply chain, and the concepts of planning allow your business to deliver higher levels of balance sheet performance.
As communication technology improves, a lot of businesses turn to their customers for information to improve their planning and supply systems. The internet allows for businesses to get their hands on enough customer feedback to be able to make more and more accurate predictions, and to more accurately understand the needs and wants of their customer base.
Everything happens in the planning stages, and businesses are no different. If you’re working on finding interim candidates for a supply chain, please contact us at Optimum Supply Chain Recruiters.